The lender said that its residential affordability rates, which is now three per cent above its reversion rate, will now reflect the December’s Bank of England base rate.

It has also altered its BTL rental cover thresholds. Where at least one applicant’s income tax band is 20 per cent or less the interest coverage ratio will fall from 130 per cent to 125 per cent.

Where all applicants’ income tax bands are higher than 20 per cent will increase to 150 per cent from 145 per cent.

Santander added that it had introduced new rules around BTL owner occupiers, so at least one applicant must have a residential property, checked on the land registry, but they do not need to live in it.

There is also a decline rule for BTL applications for borrowers who are looking to purchase property they are renting.

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